1. DUPONT 2007ANNUAL REVIEW Science Delivering Shareholder Value
Chairman’s Message
To DuPont Shareholders:
DuPont delivered strong results
in 2007, overcoming the challenges
of lower U.S. housing and auto
demand and higher cost ingredients.
Our strength came from rapid
revenue growth in emerging
markets, our Agriculture &
Nutrition segment, higher returns
on innovation, and continued cost
and capital productivity gains. There are powerful reasons
why our shareholders should view their investment in
DuPont with confidence for 2008 and beyond.
We recognize that these are challenging times, as the
macroeconomic and global political environment creates
concerns among investors about the outlook for business
profitability and growth for companies across the industrial,
consumer and service sectors.
While such concerns are real, the multi-year transformation
of DuPont and our improved performance have put us in a
better position to meet these challenges.
Our Recent Performance
Aligned with our acceleration plan announced in November
2005, DuPont has:
• Improved our overall segment pre-tax operating income
margin from 11 percent in 2003 to 17 percent in 2007.
Return on invested capital increased from 8 to 16 percent
over the same period.
• Repurchased 12 percent of our outstanding stock for
$5 billion.
• Raised the dividend by 11 percent. We currently pay you
$1.4 billion a year in dividends—twice the average of the
S&P 500 on a per share basis and about 35 percent of our
cash flow from operations.
In addition, our metrics for new product launches, patents
filed and granted, and sales from new products have all
moved significantly upward in the past three years.
Our entire team is intensely focused on meeting our near-
term financial targets in sales, earnings and cash. We are
confident we can deliver attractive growth in earnings in
2008, and see even stronger growth in the years to follow—
continuing our improvement of the last three years.
in emerging markets were 13 percent in emerging
Europe, 18 percent in emerging Asia and 11 percent in
Latin America.
• U.S. housing markets have declined for almost two years,
but DuPont has more than offset the impact with growth
outside the U.S.
• Our balance sheet is strong with a prudent level of debt.
We are able to weather an economic downturn and have
plenty of borrowing power to fund growth investments
and opportunities as they develop.
Looking beyond 2008…through 2010 we see clear potential
for average double-digit earnings growth driven by
advances in several strategic areas:
• New science for growing agriculture markets. DuPont is
vital to the world’s food supply. With demand for protein
rising rapidly, global food production will have to double
between now and 2025 on virtually the same amount of
land currently in production. As one of the world’s largest
producers of corn and soy seed and crop protection
products, DuPont is bringing to market more efficient
and cost-effective control systems for weeds, insects and
fungus to boost farm productivity, quality and yield. Our
rate of innovation is the fastest ever, as evidenced by new
products such as Optimum® GAT® traits and Rynaxypyr®
insecticide, and we will capitalize on this strength.
• Growing demand for Safety & Protection. People want
to feel safer and more secure at home, on the job, in
their cars—everywhere. DuPont’s long experience and
$6 billion base business in advanced materials such as
Kevlar®, Nomex®, and Tyvek® have resulted in a broad
offering of products and services that address this
growing global need. In 2007, we announced a new
$500 million Kevlar® brand fiber production facility in
South Carolina, which came on the heels of capacity
expansions for Nomex® flame-resistant fibers. In
2008, we will continue to use our science and growth
investments to take advantage of the opportunity we see
for attractive growth in our Safety & Protection segment.
Sustainable Growth Is Our Mission: The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Key Products & Services:
Seeds | Traits | Crop
protection chemicals |
Food ingredients |
Food quality and safety
Core Markets:
Production agriculture |
Food processing
2007 Sales: $6.8 billion
DuPont Coatings
& Color Technologies
Key Products & Services:
Titanium dioxide | Liquid
and powder coatings |
Coatings and application
services
Core Markets:
Automotive OEM | Collision
repair | Paper, Industrial
coatings | Transportation |
Architectural coatings |
Plastics
2007 Sales: $6.6 billion
DuPont Electronic
& Communication
Technologies
Key Products & Services:
Circuit and component
materials | Flexographic
printing systems |
Photovoltaic materials |
Refrigerants | Surfacing
materials | Semiconductor
fabrication and packaging
materials | Wire and cable
materials
Core Markets:
Semiconductors | Printed
circuit boards and
components | Automotive
and industrial electronics |
Displays | Packaging and
commercial printing | HVAC
refrigeration | Chemical
processing industries |
Electronic data and
telecommunications |
Alternative energy
2007 Sales: $3.8 billion
DuPont Performance
Materials
Key Products & Services:
Engineering polymers |
Flexible packaging resins |
Industrial resins |
Performance elastomers |
Performance films
Core Markets:
Automotive | Packaging |
Electrical/electronics |
Construction | Consumer
durables
2007 Sales: $6.6 billion
DuPont Safety
& Protection
Key Products & Services:
Safety and operational
consulting and training |
Specialty, performance,
and industrial chemicals |
DuPont™ Corian®
solid
surfaces | DuPont™ Kevlar®
fiber | DuPont™ Nomex®
fiber and paper | DuPont™
Tyvek®
protective material
and other selective barriers
Core Markets:
Construction | Energy |
Health care | Military/
Homeland security |
Protective apparel |
Transportation
2007 Sales: $5.6 billion
Our Market-Based Science Is Delivering Growth
DuPont is a science company. The core of our capability
and competitive advantage is market-driven scientific
discovery and new product innovation. Our strengthened
science capability has been the driving force behind the
transformation of DuPont over the past decade, and has
reshaped our businesses. In particular, DuPont is leading
the rapid convergence of biology and chemistry to create
additional competitive advantage and open new global
markets for superior-performing products.
Today over 5,000 DuPont scientists worldwide are
delivering high margin, high value-added products that
are aimed directly at unmet market needs. Sales of these
products, which I will outline in the next section, have
been instrumental in helping us overcome higher energy
and ingredient costs, including record high oil prices.
Based on important measures such as new product
introductions, U.S. patent applications filed and U.S.
patents granted, DuPont is demonstrating superior R&D
performance, which helped boost average selling prices
about 3 to 5 percent annually for the past three years. In
2007, 36 percent of our revenues—or about $10.5 billion—
were generated by products introduced in the last five
years—up from 24 percent in 2001. In the face of a near
tripling of oil prices, this has been critical.
DuPont has a rich pipeline of new products, particularly in
Agriculture, Safety & Protection, Electronics, and applied
biosciences, with more projects underway than ever before.
Our applied biosciences businesses promise significant
future growth, particularly in biofuels and biomaterials
where we have a clear technology leadership position and
strong partnerships that will facilitate market access. These
strengths are backed by a world-class intellectual property
portfolio in biotechnology.
Fundamentals for Growth Continue in 2008 and Beyond
In 2008, our global market presence and change in business
mix since the 2001 U.S. recession will make us much more
resilient to the impacts of a recession in any one country.
This also gives us confidence we can deliver attractive
earnings growth in 2008. Let me explain why:
• In 2007, more than 60 percent of our sales were from
outside the U.S. These sales are growing rapidly. From
2001 through 2007, our compound annual growth rates
• Springboard position in emerging markets. Our rapid
topline growth in emerging markets is a key factor
in counterbalancing softness in the North America
automotive and residential housing markets. Business
unit leaders in our Performance Materials, Coatings &
Color Technologies and Electronic & Communication
Technologies segments are succeeding in generating
strong growth in the emerging markets of Asia, Central
and Eastern Europe, and Latin America.
• Extend cost productivity gains. From 2003 through 2007,
DuPont reduced fixed costs as a percent of sales by 7
points. Our cost savings projects have offset inflation
in personnel costs and have provided funding for a
large number of growth investments. Productivity is
the result of the way we work at DuPont. You can expect
us to continue to generate cost productivity gains as a
mechanism for funding growth.
We Are Committed to Delivering Increased
Shareholder Value
Behind DuPont’s improved results—from market analysis
to scientific discovery to disciplined sourcing, production
and go-to-market decision-making—are the highly skilled
60,000 dedicated employees of DuPont around the world.
Further energized by our improved results, DuPont’s
leadership team is the strongest it has ever been and is
eager to exceed new and higher goals.
The entire DuPont organization is determined to make
your investment in DuPont a lucrative and lasting one.
We appreciate your ownership of our company and remain
committed to delivering superior results compared to your
other investment alternatives.
Chad Holliday
Chairman & CEO
March 1, 2008
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expecta-
tions or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,”
“projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assump-
tions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange Commission by DuPont, particularly its 2007 Annual
Report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws,
regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business;
competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials,
research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including
measures which exclude significant items such as pretax operating income, earnings per share and return on invested capital. Non-GAAP measures are not a substitute
for GAAP results. Significant items represent special charges or credits that are important to an understanding of the company’s ongoing operations. The company
uses non-GAAP measures to evaluate and manage the company’s operations. Management believes that an analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the company, and allows investors to better evaluate the financial results of the company. The determina-
tion of significant items and these measures may not be comparable to similarly titled measures provided by other companies. A reconciliation of non-GAAP measures
to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or as furnished in the company’s SEC filings on Form
8-K which are available at www.sec.gov.
Copyright® 2008 DuPont. All Rights Reserved. The DuPont Oval logo, DuPont™, The miracles of science™ and all products denoted with ™ and ® are trademarks or
registered trademarks of DuPont or its affiliates. Herculex® insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered
trademark of Dow AgroSciences LLC.
Produced with DuPont Imaging Technologies proofing products. Printed on Sappi Aero Gloss using DuPont™ RPS Vantage Titanium Dioxide.
OUR VISION
To be the world’s most dynamic science
company, creating sustainable solutions
essential to a better, safer, healthier life
for people everywhere.
DUPONT CORE VALUES
• Safety & Health
• Environmental Stewardship
• Highest Ethical Behavior
• Respect for People
GROWTH STRATEGIES
• Put Our Science to Work
• Go Where the Growth Is
• Leverage the Power of
One DuPont
ON THE COVER: Our Heritage 1) Stephanie Kwolek, Kevlar® aramid fiber, National Medal of Technology, 1996;
2) Henry Wallace, hybrid corn commercialization; 3) Roy Plunkett, Teflon® fluoropolymers; 4) Wallace Carothers,
nylon and neoprene; 5) Lammot du Pont, soda powder; 6) George Levitt, sulfonylurea herbicides, National Medal
of Technology, 1993; 7) Charles Pedersen, crown ethers, Nobel Prize, 1987. Today’s Inventors 8) John Chen,
next-generation Surlyn® ionomers; 9) Jean-Michel Philippoz, Hytrel® thermoplastic elastomer for automotive
applications; 10) Linda Castle, Optimum® GAT® trait in soybeans and corn; 11) Allisa Gam, metal edge protective
coatings for electrodeposition paints; 12) Weiming Qiu, Charles Taylor, Sheng Peng, Kenneth Moloy, advanced
surface protection and fluoroadditive applications; 13) Dietmar Dudek, plates and Cyrel® FAST thermal processor
for continuous round print forms; 14) Pamela Sharpe, Narendra Yadav, Quinn Zhu, Bjorn Tyreus, sustainable
omega-3 fatty acids; 15) George Lahm, Rynaxypyr® insecticide; 16) Reiyao Zhu, Protera™ arc and thermal
protection; 17) Lap-Tak Cheng, Kenneth Leffew, Lynda Johnson, Jonathan Caspar, advanced materials for
displays and electronics; 18) David Luckey, high productivity Kevlar® fiber spinning process; 19) Patricia Tooley,
organic treatment of TiO2 pigment; 20) Ann Vaes, clearcoats and waterborne basecoats for environmentally
smart refinish; 21) Charles Noelke, next-generation fluoromaterial products and processes.
1
5
15
19
8
9
21
2
12
4
11
10
Science Delivering Shareholder Value
3
7
13
14
16
18
206
Net Sales
(dollars in billions)
$5
$10
$15
$20
$25
$30
2003
Textiles & Interiors, which was divested
in 2004.
2004 2005 2006 2007
Pretax Operating Income Margin1
(percentage)
20%
5%
10%
15%
2003 2004 2005 2006 2007
Earnings Per Share1
(dollars)
2003 2004 2005 2006 2007
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
1 Before significant items.
2 Excludes other comprehensive income.
20%
5%
10%
15%
2003 2004 2005 2006 2007
Return on Invested Capital1, 2
(percentage)
DUPONT 2007ANNUAL REVIEW
17
Dupont_2007_AR_V55.indd 1Dupont_2007_AR_V55.indd 1 3/6/08 12:41:17 PM3/6/08 12:41:17 PM
2. DUPONT 2007ANNUAL REVIEW Science Delivering Shareholder Value
Chairman’s Message
To DuPont Shareholders:
DuPont delivered strong results
in 2007, overcoming the challenges
of lower U.S. housing and auto
demand and higher cost ingredients.
Our strength came from rapid
revenue growth in emerging
markets, our Agriculture &
Nutrition segment, higher returns
on innovation, and continued cost
and capital productivity gains. There are powerful reasons
why our shareholders should view their investment in
DuPont with confidence for 2008 and beyond.
We recognize that these are challenging times, as the
macroeconomic and global political environment creates
concerns among investors about the outlook for business
profitability and growth for companies across the industrial,
consumer and service sectors.
While such concerns are real, the multi-year transformation
of DuPont and our improved performance have put us in a
better position to meet these challenges.
Our Recent Performance
Aligned with our acceleration plan announced in November
2005, DuPont has:
• Improved our overall segment pre-tax operating income
margin from 11 percent in 2003 to 17 percent in 2007.
Return on invested capital increased from 8 to 16 percent
over the same period.
• Repurchased 12 percent of our outstanding stock for
$5 billion.
• Raised the dividend by 11 percent. We currently pay you
$1.4 billion a year in dividends—twice the average of the
S&P 500 on a per share basis and about 35 percent of our
cash flow from operations.
In addition, our metrics for new product launches, patents
filed and granted, and sales from new products have all
moved significantly upward in the past three years.
Our entire team is intensely focused on meeting our near-
term financial targets in sales, earnings and cash. We are
confident we can deliver attractive growth in earnings in
2008, and see even stronger growth in the years to follow—
continuing our improvement of the last three years.
in emerging markets were 13 percent in emerging
Europe, 18 percent in emerging Asia and 11 percent in
Latin America.
• U.S. housing markets have declined for almost two years,
but DuPont has more than offset the impact with growth
outside the U.S.
• Our balance sheet is strong with a prudent level of debt.
We are able to weather an economic downturn and have
plenty of borrowing power to fund growth investments
and opportunities as they develop.
Looking beyond 2008…through 2010 we see clear potential
for average double-digit earnings growth driven by
advances in several strategic areas:
• New science for growing agriculture markets. DuPont is
vital to the world’s food supply. With demand for protein
rising rapidly, global food production will have to double
between now and 2025 on virtually the same amount of
land currently in production. As one of the world’s largest
producers of corn and soy seed and crop protection
products, DuPont is bringing to market more efficient
and cost-effective control systems for weeds, insects and
fungus to boost farm productivity, quality and yield. Our
rate of innovation is the fastest ever, as evidenced by new
products such as Optimum® GAT® traits and Rynaxypyr®
insecticide, and we will capitalize on this strength.
• Growing demand for Safety & Protection. People want
to feel safer and more secure at home, on the job, in
their cars—everywhere. DuPont’s long experience and
$6 billion base business in advanced materials such as
Kevlar®, Nomex®, and Tyvek® have resulted in a broad
offering of products and services that address this
growing global need. In 2007, we announced a new
$500 million Kevlar® brand fiber production facility in
South Carolina, which came on the heels of capacity
expansions for Nomex® flame-resistant fibers. In
2008, we will continue to use our science and growth
investments to take advantage of the opportunity we see
for attractive growth in our Safety & Protection segment.
Sustainable Growth Is Our Mission: The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Key Products & Services:
Seeds | Traits | Crop
protection chemicals |
Food ingredients |
Food quality and safety
Core Markets:
Production agriculture |
Food processing
2007 Sales: $6.8 billion
DuPont Coatings
& Color Technologies
Key Products & Services:
Titanium dioxide | Liquid
and powder coatings |
Coatings and application
services
Core Markets:
Automotive OEM | Collision
repair | Paper, Industrial
coatings | Transportation |
Architectural coatings |
Plastics
2007 Sales: $6.6 billion
DuPont Electronic
& Communication
Technologies
Key Products & Services:
Circuit and component
materials | Flexographic
printing systems |
Photovoltaic materials |
Refrigerants | Surfacing
materials | Semiconductor
fabrication and packaging
materials | Wire and cable
materials
Core Markets:
Semiconductors | Printed
circuit boards and
components | Automotive
and industrial electronics |
Displays | Packaging and
commercial printing | HVAC
refrigeration | Chemical
processing industries |
Electronic data and
telecommunications |
Alternative energy
2007 Sales: $3.8 billion
DuPont Performance
Materials
Key Products & Services:
Engineering polymers |
Flexible packaging resins |
Industrial resins |
Performance elastomers |
Performance films
Core Markets:
Automotive | Packaging |
Electrical/electronics |
Construction | Consumer
durables
2007 Sales: $6.6 billion
DuPont Safety
& Protection
Key Products & Services:
Safety and operational
consulting and training |
Specialty, performance,
and industrial chemicals |
DuPont™ Corian®
solid
surfaces | DuPont™ Kevlar®
fiber | DuPont™ Nomex®
fiber and paper | DuPont™
Tyvek®
protective material
and other selective barriers
Core Markets:
Construction | Energy |
Health care | Military/
Homeland security |
Protective apparel |
Transportation
2007 Sales: $5.6 billion
Our Market-Based Science Is Delivering Growth
DuPont is a science company. The core of our capability
and competitive advantage is market-driven scientific
discovery and new product innovation. Our strengthened
science capability has been the driving force behind the
transformation of DuPont over the past decade, and has
reshaped our businesses. In particular, DuPont is leading
the rapid convergence of biology and chemistry to create
additional competitive advantage and open new global
markets for superior-performing products.
Today over 5,000 DuPont scientists worldwide are
delivering high margin, high value-added products that
are aimed directly at unmet market needs. Sales of these
products, which I will outline in the next section, have
been instrumental in helping us overcome higher energy
and ingredient costs, including record high oil prices.
Based on important measures such as new product
introductions, U.S. patent applications filed and U.S.
patents granted, DuPont is demonstrating superior R&D
performance, which helped boost average selling prices
about 3 to 5 percent annually for the past three years. In
2007, 36 percent of our revenues—or about $10.5 billion—
were generated by products introduced in the last five
years—up from 24 percent in 2001. In the face of a near
tripling of oil prices, this has been critical.
DuPont has a rich pipeline of new products, particularly in
Agriculture, Safety & Protection, Electronics, and applied
biosciences, with more projects underway than ever before.
Our applied biosciences businesses promise significant
future growth, particularly in biofuels and biomaterials
where we have a clear technology leadership position and
strong partnerships that will facilitate market access. These
strengths are backed by a world-class intellectual property
portfolio in biotechnology.
Fundamentals for Growth Continue in 2008 and Beyond
In 2008, our global market presence and change in business
mix since the 2001 U.S. recession will make us much more
resilient to the impacts of a recession in any one country.
This also gives us confidence we can deliver attractive
earnings growth in 2008. Let me explain why:
• In 2007, more than 60 percent of our sales were from
outside the U.S. These sales are growing rapidly. From
2001 through 2007, our compound annual growth rates
• Springboard position in emerging markets. Our rapid
topline growth in emerging markets is a key factor
in counterbalancing softness in the North America
automotive and residential housing markets. Business
unit leaders in our Performance Materials, Coatings &
Color Technologies and Electronic & Communication
Technologies segments are succeeding in generating
strong growth in the emerging markets of Asia, Central
and Eastern Europe, and Latin America.
• Extend cost productivity gains. From 2003 through 2007,
DuPont reduced fixed costs as a percent of sales by 7
points. Our cost savings projects have offset inflation
in personnel costs and have provided funding for a
large number of growth investments. Productivity is
the result of the way we work at DuPont. You can expect
us to continue to generate cost productivity gains as a
mechanism for funding growth.
We Are Committed to Delivering Increased
Shareholder Value
Behind DuPont’s improved results—from market analysis
to scientific discovery to disciplined sourcing, production
and go-to-market decision-making—are the highly skilled
60,000 dedicated employees of DuPont around the world.
Further energized by our improved results, DuPont’s
leadership team is the strongest it has ever been and is
eager to exceed new and higher goals.
The entire DuPont organization is determined to make
your investment in DuPont a lucrative and lasting one.
We appreciate your ownership of our company and remain
committed to delivering superior results compared to your
other investment alternatives.
Chad Holliday
Chairman & CEO
March 1, 2008
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expecta-
tions or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,”
“projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assump-
tions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange Commission by DuPont, particularly its 2007 Annual
Report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws,
regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business;
competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials,
research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including
measures which exclude significant items such as pretax operating income, earnings per share and return on invested capital. Non-GAAP measures are not a substitute
for GAAP results. Significant items represent special charges or credits that are important to an understanding of the company’s ongoing operations. The company
uses non-GAAP measures to evaluate and manage the company’s operations. Management believes that an analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the company, and allows investors to better evaluate the financial results of the company. The determina-
tion of significant items and these measures may not be comparable to similarly titled measures provided by other companies. A reconciliation of non-GAAP measures
to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or as furnished in the company’s SEC filings on Form
8-K which are available at www.sec.gov.
Copyright® 2008 DuPont. All Rights Reserved. The DuPont Oval logo, DuPont™, The miracles of science™ and all products denoted with ™ and ® are trademarks or
registered trademarks of DuPont or its affiliates. Herculex® insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered
trademark of Dow AgroSciences LLC.
Produced with DuPont Imaging Technologies proofing products. Printed on Sappi Aero Gloss using DuPont™ RPS Vantage Titanium Dioxide.
OUR VISION
To be the world’s most dynamic science
company, creating sustainable solutions
essential to a better, safer, healthier life
for people everywhere.
DUPONT CORE VALUES
• Safety & Health
• Environmental Stewardship
• Highest Ethical Behavior
• Respect for People
GROWTH STRATEGIES
• Put Our Science to Work
• Go Where the Growth Is
• Leverage the Power of
One DuPont
ON THE COVER: Our Heritage 1) Stephanie Kwolek, Kevlar® aramid fiber, National Medal of Technology, 1996;
2) Henry Wallace, hybrid corn commercialization; 3) Roy Plunkett, Teflon® fluoropolymers; 4) Wallace Carothers,
nylon and neoprene; 5) Lammot du Pont, soda powder; 6) George Levitt, sulfonylurea herbicides, National Medal
of Technology, 1993; 7) Charles Pedersen, crown ethers, Nobel Prize, 1987. Today’s Inventors 8) John Chen,
next-generation Surlyn® ionomers; 9) Jean-Michel Philippoz, Hytrel® thermoplastic elastomer for automotive
applications; 10) Linda Castle, Optimum® GAT® trait in soybeans and corn; 11) Allisa Gam, metal edge protective
coatings for electrodeposition paints; 12) Weiming Qiu, Charles Taylor, Sheng Peng, Kenneth Moloy, advanced
surface protection and fluoroadditive applications; 13) Dietmar Dudek, plates and Cyrel® FAST thermal processor
for continuous round print forms; 14) Pamela Sharpe, Narendra Yadav, Quinn Zhu, Bjorn Tyreus, sustainable
omega-3 fatty acids; 15) George Lahm, Rynaxypyr® insecticide; 16) Reiyao Zhu, Protera™ arc and thermal
protection; 17) Lap-Tak Cheng, Kenneth Leffew, Lynda Johnson, Jonathan Caspar, advanced materials for
displays and electronics; 18) David Luckey, high productivity Kevlar® fiber spinning process; 19) Patricia Tooley,
organic treatment of TiO2 pigment; 20) Ann Vaes, clearcoats and waterborne basecoats for environmentally
smart refinish; 21) Charles Noelke, next-generation fluoromaterial products and processes.
1
5
15
19
8
9
21
2
12
4
11
10
Science Delivering Shareholder Value
3
7
13
14
16
18
206
Net Sales
(dollars in billions)
$5
$10
$15
$20
$25
$30
2003
Textiles & Interiors, which was divested
in 2004.
2004 2005 2006 2007
Pretax Operating Income Margin1
(percentage)
20%
5%
10%
15%
2003 2004 2005 2006 2007
Earnings Per Share1
(dollars)
2003 2004 2005 2006 2007
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
1 Before significant items.
2 Excludes other comprehensive income.
20%
5%
10%
15%
2003 2004 2005 2006 2007
Return on Invested Capital1, 2
(percentage)
DUPONT 2007ANNUAL REVIEW
17
Dupont_2007_AR_V55.indd 1Dupont_2007_AR_V55.indd 1 3/6/08 12:41:17 PM3/6/08 12:41:17 PM
3. DUPONT 2007ANNUAL REVIEW Science Delivering Shareholder Value
Chairman’s Message
To DuPont Shareholders:
DuPont delivered strong results
in 2007, overcoming the challenges
of lower U.S. housing and auto
demand and higher cost ingredients.
Our strength came from rapid
revenue growth in emerging
markets, our Agriculture &
Nutrition segment, higher returns
on innovation, and continued cost
and capital productivity gains. There are powerful reasons
why our shareholders should view their investment in
DuPont with confidence for 2008 and beyond.
We recognize that these are challenging times, as the
macroeconomic and global political environment creates
concerns among investors about the outlook for business
profitability and growth for companies across the industrial,
consumer and service sectors.
While such concerns are real, the multi-year transformation
of DuPont and our improved performance have put us in a
better position to meet these challenges.
Our Recent Performance
Aligned with our acceleration plan announced in November
2005, DuPont has:
• Improved our overall segment pre-tax operating income
margin from 11 percent in 2003 to 17 percent in 2007.
Return on invested capital increased from 8 to 16 percent
over the same period.
• Repurchased 12 percent of our outstanding stock for
$5 billion.
• Raised the dividend by 11 percent. We currently pay you
$1.4 billion a year in dividends—twice the average of the
S&P 500 on a per share basis and about 35 percent of our
cash flow from operations.
In addition, our metrics for new product launches, patents
filed and granted, and sales from new products have all
moved significantly upward in the past three years.
Our entire team is intensely focused on meeting our near-
term financial targets in sales, earnings and cash. We are
confident we can deliver attractive growth in earnings in
2008, and see even stronger growth in the years to follow—
continuing our improvement of the last three years.
in emerging markets were 13 percent in emerging
Europe, 18 percent in emerging Asia and 11 percent in
Latin America.
• U.S. housing markets have declined for almost two years,
but DuPont has more than offset the impact with growth
outside the U.S.
• Our balance sheet is strong with a prudent level of debt.
We are able to weather an economic downturn and have
plenty of borrowing power to fund growth investments
and opportunities as they develop.
Looking beyond 2008…through 2010 we see clear potential
for average double-digit earnings growth driven by
advances in several strategic areas:
• New science for growing agriculture markets. DuPont is
vital to the world’s food supply. With demand for protein
rising rapidly, global food production will have to double
between now and 2025 on virtually the same amount of
land currently in production. As one of the world’s largest
producers of corn and soy seed and crop protection
products, DuPont is bringing to market more efficient
and cost-effective control systems for weeds, insects and
fungus to boost farm productivity, quality and yield. Our
rate of innovation is the fastest ever, as evidenced by new
products such as Optimum® GAT® traits and Rynaxypyr®
insecticide, and we will capitalize on this strength.
• Growing demand for Safety & Protection. People want
to feel safer and more secure at home, on the job, in
their cars—everywhere. DuPont’s long experience and
$6 billion base business in advanced materials such as
Kevlar®, Nomex®, and Tyvek® have resulted in a broad
offering of products and services that address this
growing global need. In 2007, we announced a new
$500 million Kevlar® brand fiber production facility in
South Carolina, which came on the heels of capacity
expansions for Nomex® flame-resistant fibers. In
2008, we will continue to use our science and growth
investments to take advantage of the opportunity we see
for attractive growth in our Safety & Protection segment.
Sustainable Growth Is Our Mission: The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Key Products & Services:
Seeds | Traits | Crop
protection chemicals |
Food ingredients |
Food quality and safety
Core Markets:
Production agriculture |
Food processing
2007 Sales: $6.8 billion
DuPont Coatings
& Color Technologies
Key Products & Services:
Titanium dioxide | Liquid
and powder coatings |
Coatings and application
services
Core Markets:
Automotive OEM | Collision
repair | Paper, Industrial
coatings | Transportation |
Architectural coatings |
Plastics
2007 Sales: $6.6 billion
DuPont Electronic
& Communication
Technologies
Key Products & Services:
Circuit and component
materials | Flexographic
printing systems |
Photovoltaic materials |
Refrigerants | Surfacing
materials | Semiconductor
fabrication and packaging
materials | Wire and cable
materials
Core Markets:
Semiconductors | Printed
circuit boards and
components | Automotive
and industrial electronics |
Displays | Packaging and
commercial printing | HVAC
refrigeration | Chemical
processing industries |
Electronic data and
telecommunications |
Alternative energy
2007 Sales: $3.8 billion
DuPont Performance
Materials
Key Products & Services:
Engineering polymers |
Flexible packaging resins |
Industrial resins |
Performance elastomers |
Performance films
Core Markets:
Automotive | Packaging |
Electrical/electronics |
Construction | Consumer
durables
2007 Sales: $6.6 billion
DuPont Safety
& Protection
Key Products & Services:
Safety and operational
consulting and training |
Specialty, performance,
and industrial chemicals |
DuPont™ Corian®
solid
surfaces | DuPont™ Kevlar®
fiber | DuPont™ Nomex®
fiber and paper | DuPont™
Tyvek®
protective material
and other selective barriers
Core Markets:
Construction | Energy |
Health care | Military/
Homeland security |
Protective apparel |
Transportation
2007 Sales: $5.6 billion
Our Market-Based Science Is Delivering Growth
DuPont is a science company. The core of our capability
and competitive advantage is market-driven scientific
discovery and new product innovation. Our strengthened
science capability has been the driving force behind the
transformation of DuPont over the past decade, and has
reshaped our businesses. In particular, DuPont is leading
the rapid convergence of biology and chemistry to create
additional competitive advantage and open new global
markets for superior-performing products.
Today over 5,000 DuPont scientists worldwide are
delivering high margin, high value-added products that
are aimed directly at unmet market needs. Sales of these
products, which I will outline in the next section, have
been instrumental in helping us overcome higher energy
and ingredient costs, including record high oil prices.
Based on important measures such as new product
introductions, U.S. patent applications filed and U.S.
patents granted, DuPont is demonstrating superior R&D
performance, which helped boost average selling prices
about 3 to 5 percent annually for the past three years. In
2007, 36 percent of our revenues—or about $10.5 billion—
were generated by products introduced in the last five
years—up from 24 percent in 2001. In the face of a near
tripling of oil prices, this has been critical.
DuPont has a rich pipeline of new products, particularly in
Agriculture, Safety & Protection, Electronics, and applied
biosciences, with more projects underway than ever before.
Our applied biosciences businesses promise significant
future growth, particularly in biofuels and biomaterials
where we have a clear technology leadership position and
strong partnerships that will facilitate market access. These
strengths are backed by a world-class intellectual property
portfolio in biotechnology.
Fundamentals for Growth Continue in 2008 and Beyond
In 2008, our global market presence and change in business
mix since the 2001 U.S. recession will make us much more
resilient to the impacts of a recession in any one country.
This also gives us confidence we can deliver attractive
earnings growth in 2008. Let me explain why:
• In 2007, more than 60 percent of our sales were from
outside the U.S. These sales are growing rapidly. From
2001 through 2007, our compound annual growth rates
• Springboard position in emerging markets. Our rapid
topline growth in emerging markets is a key factor
in counterbalancing softness in the North America
automotive and residential housing markets. Business
unit leaders in our Performance Materials, Coatings &
Color Technologies and Electronic & Communication
Technologies segments are succeeding in generating
strong growth in the emerging markets of Asia, Central
and Eastern Europe, and Latin America.
• Extend cost productivity gains. From 2003 through 2007,
DuPont reduced fixed costs as a percent of sales by 7
points. Our cost savings projects have offset inflation
in personnel costs and have provided funding for a
large number of growth investments. Productivity is
the result of the way we work at DuPont. You can expect
us to continue to generate cost productivity gains as a
mechanism for funding growth.
We Are Committed to Delivering Increased
Shareholder Value
Behind DuPont’s improved results—from market analysis
to scientific discovery to disciplined sourcing, production
and go-to-market decision-making—are the highly skilled
60,000 dedicated employees of DuPont around the world.
Further energized by our improved results, DuPont’s
leadership team is the strongest it has ever been and is
eager to exceed new and higher goals.
The entire DuPont organization is determined to make
your investment in DuPont a lucrative and lasting one.
We appreciate your ownership of our company and remain
committed to delivering superior results compared to your
other investment alternatives.
Chad Holliday
Chairman & CEO
March 1, 2008
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expecta-
tions or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,”
“projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assump-
tions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange Commission by DuPont, particularly its 2007 Annual
Report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws,
regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business;
competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials,
research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including
measures which exclude significant items such as pretax operating income, earnings per share and return on invested capital. Non-GAAP measures are not a substitute
for GAAP results. Significant items represent special charges or credits that are important to an understanding of the company’s ongoing operations. The company
uses non-GAAP measures to evaluate and manage the company’s operations. Management believes that an analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the company, and allows investors to better evaluate the financial results of the company. The determina-
tion of significant items and these measures may not be comparable to similarly titled measures provided by other companies. A reconciliation of non-GAAP measures
to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or as furnished in the company’s SEC filings on Form
8-K which are available at www.sec.gov.
Copyright® 2008 DuPont. All Rights Reserved. The DuPont Oval logo, DuPont™, The miracles of science™ and all products denoted with ™ and ® are trademarks or
registered trademarks of DuPont or its affiliates. Herculex® insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered
trademark of Dow AgroSciences LLC.
Produced with DuPont Imaging Technologies proofing products. Printed on Sappi Aero Gloss using DuPont™ RPS Vantage Titanium Dioxide.
OUR VISION
To be the world’s most dynamic science
company, creating sustainable solutions
essential to a better, safer, healthier life
for people everywhere.
DUPONT CORE VALUES
• Safety & Health
• Environmental Stewardship
• Highest Ethical Behavior
• Respect for People
GROWTH STRATEGIES
• Put Our Science to Work
• Go Where the Growth Is
• Leverage the Power of
One DuPont
ON THE COVER: Our Heritage 1) Stephanie Kwolek, Kevlar® aramid fiber, National Medal of Technology, 1996;
2) Henry Wallace, hybrid corn commercialization; 3) Roy Plunkett, Teflon® fluoropolymers; 4) Wallace Carothers,
nylon and neoprene; 5) Lammot du Pont, soda powder; 6) George Levitt, sulfonylurea herbicides, National Medal
of Technology, 1993; 7) Charles Pedersen, crown ethers, Nobel Prize, 1987. Today’s Inventors 8) John Chen,
next-generation Surlyn® ionomers; 9) Jean-Michel Philippoz, Hytrel® thermoplastic elastomer for automotive
applications; 10) Linda Castle, Optimum® GAT® trait in soybeans and corn; 11) Allisa Gam, metal edge protective
coatings for electrodeposition paints; 12) Weiming Qiu, Charles Taylor, Sheng Peng, Kenneth Moloy, advanced
surface protection and fluoroadditive applications; 13) Dietmar Dudek, plates and Cyrel® FAST thermal processor
for continuous round print forms; 14) Pamela Sharpe, Narendra Yadav, Quinn Zhu, Bjorn Tyreus, sustainable
omega-3 fatty acids; 15) George Lahm, Rynaxypyr® insecticide; 16) Reiyao Zhu, Protera™ arc and thermal
protection; 17) Lap-Tak Cheng, Kenneth Leffew, Lynda Johnson, Jonathan Caspar, advanced materials for
displays and electronics; 18) David Luckey, high productivity Kevlar® fiber spinning process; 19) Patricia Tooley,
organic treatment of TiO2 pigment; 20) Ann Vaes, clearcoats and waterborne basecoats for environmentally
smart refinish; 21) Charles Noelke, next-generation fluoromaterial products and processes.
1
5
15
19
8
9
21
2
12
4
11
10
Science Delivering Shareholder Value
3
7
13
14
16
18
206
Net Sales
(dollars in billions)
$5
$10
$15
$20
$25
$30
2003
Textiles & Interiors, which was divested
in 2004.
2004 2005 2006 2007
Pretax Operating Income Margin1
(percentage)
20%
5%
10%
15%
2003 2004 2005 2006 2007
Earnings Per Share1
(dollars)
2003 2004 2005 2006 2007
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
1 Before significant items.
2 Excludes other comprehensive income.
20%
5%
10%
15%
2003 2004 2005 2006 2007
Return on Invested Capital1, 2
(percentage)
DUPONT 2007ANNUAL REVIEW
17
Dupont_2007_AR_V55.indd 1Dupont_2007_AR_V55.indd 1 3/6/08 12:41:17 PM3/6/08 12:41:17 PM
4. 0–2 years2–4 years4–6 years6–10 years
Early CommercializationConcept Definition & Market Validation Feasibility Demonstration Product Development
Science Delivering Shareholder Value
Examples from the DuPont R&D Pipeline and Years to Commercialization
Active Matrix
Full-Color OLED
Cyazypyr™
Insecticide
Energy Efficiency
EcoConcept Finishing System
Combining two coating steps into one
waterborne basecoat, the EcoConcept
finishing system saves carmakers
substantial amounts of energy,
time and capital while also reducing
emissions. Winner of the 2007 PACE
Award for superior innovation from
Automotive News, EcoConcept is in
place in two Volkswagen plants.
Alternative Energy
DuPont™
Solamet®
Conductive Thick
Film Materials for Photovoltaics
A new series of DuPont™ Solamet®
screen-printable thick film materials
enables solar cell manufacturers to
significantly reduce their cost per watt
by achieving higher cell efficiencies,
higher production yields and lower
material consumption. The improved
power output is a vital advancement
for solar energy productivity.
More & Better Food
Herculex®
Insect Protection for Corn
In 22 university trials across five states,
Pioneer®
brand hybrids with Herculex®
XTRA, The Better Bt™, demonstrated
exceptional protection against corn
rootworms for a second consecutive
year and also delivered an average of
21 bushels/acre yield advantage versus
untreated controls. Also in 2007, the
European Union Commission approved
Herculex®
RW corn for food, feed,
import and processing.
Safety & Security
DuPont™
Protera™
Fabric for
Comfort and Safety
Fueled by the market demand for
protective apparel, DuPont announced
a $100 million expansion of Nomex®
production for 2008. Recently introduced
DuPont™ Protera™ fabric, from the
DuPont™ Nomex®
family of products,
is specifically engineered to protect
electricians and utility workers from the
risk of electric arc hazards.
Renewably Sourced
Materials
Zemea™
Renewably Sourced Propanediol
for Cosmetics and Personal Care
A product of DuPont Tate & Lyle Bio
Products, Zemea™ renewably sourced pro-
panediol is used in cosmetics and personal
care applications. In 2007, Terra Naturals,
Inc. introduced the first deodorants with
Zemea™. Made from corn sugar, Zemea™
replaces numerous petroleum-derived
glycols in a variety of consumer applica-
tions. Look for Zemea™ in products
ranging from moisturizers to shampoos
to liquid detergents in 2008 and beyond.
Improved Communications
DuPont™
MetaFuse™
Nanometal/
Polymer Hybrids
MetaFuse™ is a patented technology that
applies ultra high strength nanometal
to components made of DuPont
engineering polymers. The result is the
best of both worlds: the strength and
high stiffness of metal combined with
the ability of thermoplastics to enable
integration and form complex shapes.
MetaFuse™ is being considered for
applications in the automotive, electronics,
sporting goods and other markets.
Next-Generation Green
Building Materials
All examples are as of March 1, 2008.
Nitrogen Use Efficiency in Corn
Next-Generation
Insect Resistance
Management in Corn
Next-Generation
Biofuels
Printable Electronics
Next-Generation Integrated
Photovoltaic Solutions
Next-Generation
Clean Technologies
Next-Generation
Nomex® for
Personal Protection
Broad Spectrum
Fungicide for Cereals
& Specialty Crops
Biobutanol
Advanced Biofuels
Thermal Substrates for
Electronic Packaging
Drought Tolerance
in Corn
Nanocoatings
for Windmills
Cellulosic
Biofuels
Next-Generation
Low Global Warming
Potential Refrigerants
Smart Materials
for Chem/Bio
Protection
Cyrel® FAST Round
Printing Process for Flexible
Packaging Graphics
Microspheres
for Biomedical
Applications
Improved Insect
Resistance
Management in Corn
Waterborne Clearcoat
for Auto Aftermarket
Actamax™ Bioadhesives
for Wound Closure
Nonwoven Structures
for Energy
Efficient Construction
Next-Generation
Communication
Cabling
Removable
Antimicrobial Coatings
Specialty
Herbicide
Optimum® GAT®
Trait in Corn
UV Clearcoat
for Autos
Thermal Color
Filters for Displays
Izon® Authentication
Holograms for
Anti-Counterfeiting
Landmine-Resistant
Ambush-Protection
Materials
Embedded Passive
Materials for Electronics
SentryGlas® Plus
Structural Interlayers
SoleCina™ Meat
and Soy Solutions
Plasma Display Panel
Conductors
Thermal Garments
for Life Protection
Optimum® GAT®
Trait in Soybeans
Tedlar® PV for
Photovoltaics
Optimum® AcreMax™
Insect Control in Corn
Rynaxypyr®
Insecticide
High Oleic
Soybean
Renewably Sourced
Homecare Materials
Renewably Sourced
Automotive Coatings
Packaging Resins from
Renewable Resources
Sustainable
Omega-3
Nutraceuticals
Cerenol™ Renewably
Sourced Polyols
for Elastomers and
Functional Fluids
Sorona® and Hytrel®
Renewably Sourced
Engineering
Thermoplastic Resins
For DuPont, science succeeds when it makes an
impact in the marketplace. Presented here are six
of the company’s recent success stories. Below are
selected examples of products in our research
and development pipeline, poised to deliver value
in the future.
DuPont is a Market-Driven
Science Company.
An Outstanding Product Pipeline
In 2007, DuPont was ranked #1 in a quarterly Patent Board 500™ ranking of
patent portfolios of companies in all sectors across the globe. With about
2,000 new U.S. patent filings last year—and more than 20,000 patents now
in force worldwide—DuPont is determined to maintain its leadership position
while creating products that meet market needs.
Worldwide Scientific Reach
DuPont now operates more than 50 R&D centers around the globe. This not only
enables the company to attract the world’s top scientific talent—it gives DuPont
the local and regional knowledge necessary to create products that meet the
varying needs of consumers and businesses in every market.
More Than a Thousand
New Products a Year
That’s what DuPont has brought to
the marketplace each year for the past
three years. Developing those products,
from initial discovery onward, is a
complex process. But this is a world
of complex needs—for food, energy,
safety, communication, transportation,
and construction. When those needs
are met, the world is a better place
for billions of people—and for the
shareholders of DuPont.
Energy Efficiency Alternative Energy
Improved
Communications
Safety & SecurityMore & Better Food
2003 2004 2005 2006 2007
11
10
9
8
7
6
5
Annual Sales from New Products
Introduced in the Last Five Years
$billions
Renewably Sourced
Materials
Key
Icons represent market trends.
Dupont_2007_AR_V55.indd 2Dupont_2007_AR_V55.indd 2 3/6/08 12:45:18 PM3/6/08 12:45:18 PM
5. 0–2 years2–4 years4–6 years6–10 years
Early CommercializationConcept Definition & Market Validation Feasibility Demonstration Product Development
Science Delivering Shareholder Value
Examples from the DuPont R&D Pipeline and Years to Commercialization
Active Matrix
Full-Color OLED
Cyazypyr™
Insecticide
Energy Efficiency
EcoConcept Finishing System
Combining two coating steps into one
waterborne basecoat, the EcoConcept
finishing system saves carmakers
substantial amounts of energy,
time and capital while also reducing
emissions. Winner of the 2007 PACE
Award for superior innovation from
Automotive News, EcoConcept is in
place in two Volkswagen plants.
Alternative Energy
DuPont™
Solamet®
Conductive Thick
Film Materials for Photovoltaics
A new series of DuPont™ Solamet®
screen-printable thick film materials
enables solar cell manufacturers to
significantly reduce their cost per watt
by achieving higher cell efficiencies,
higher production yields and lower
material consumption. The improved
power output is a vital advancement
for solar energy productivity.
More & Better Food
Herculex®
Insect Protection for Corn
In 22 university trials across five states,
Pioneer®
brand hybrids with Herculex®
XTRA, The Better Bt™, demonstrated
exceptional protection against corn
rootworms for a second consecutive
year and also delivered an average of
21 bushels/acre yield advantage versus
untreated controls. Also in 2007, the
European Union Commission approved
Herculex®
RW corn for food, feed,
import and processing.
Safety & Security
DuPont™
Protera™
Fabric for
Comfort and Safety
Fueled by the market demand for
protective apparel, DuPont announced
a $100 million expansion of Nomex®
production for 2008. Recently introduced
DuPont™ Protera™ fabric, from the
DuPont™ Nomex®
family of products,
is specifically engineered to protect
electricians and utility workers from the
risk of electric arc hazards.
Renewably Sourced
Materials
Zemea™
Renewably Sourced Propanediol
for Cosmetics and Personal Care
A product of DuPont Tate & Lyle Bio
Products, Zemea™ renewably sourced pro-
panediol is used in cosmetics and personal
care applications. In 2007, Terra Naturals,
Inc. introduced the first deodorants with
Zemea™. Made from corn sugar, Zemea™
replaces numerous petroleum-derived
glycols in a variety of consumer applica-
tions. Look for Zemea™ in products
ranging from moisturizers to shampoos
to liquid detergents in 2008 and beyond.
Improved Communications
DuPont™
MetaFuse™
Nanometal/
Polymer Hybrids
MetaFuse™ is a patented technology that
applies ultra high strength nanometal
to components made of DuPont
engineering polymers. The result is the
best of both worlds: the strength and
high stiffness of metal combined with
the ability of thermoplastics to enable
integration and form complex shapes.
MetaFuse™ is being considered for
applications in the automotive, electronics,
sporting goods and other markets.
Next-Generation Green
Building Materials
All examples are as of March 1, 2008.
Nitrogen Use Efficiency in Corn
Next-Generation
Insect Resistance
Management in Corn
Next-Generation
Biofuels
Printable Electronics
Next-Generation Integrated
Photovoltaic Solutions
Next-Generation
Clean Technologies
Next-Generation
Nomex® for
Personal Protection
Broad Spectrum
Fungicide for Cereals
& Specialty Crops
Biobutanol
Advanced Biofuels
Thermal Substrates for
Electronic Packaging
Drought Tolerance
in Corn
Nanocoatings
for Windmills
Cellulosic
Biofuels
Next-Generation
Low Global Warming
Potential Refrigerants
Smart Materials
for Chem/Bio
Protection
Cyrel® FAST Round
Printing Process for Flexible
Packaging Graphics
Microspheres
for Biomedical
Applications
Improved Insect
Resistance
Management in Corn
Waterborne Clearcoat
for Auto Aftermarket
Actamax™ Bioadhesives
for Wound Closure
Nonwoven Structures
for Energy
Efficient Construction
Next-Generation
Communication
Cabling
Removable
Antimicrobial Coatings
Specialty
Herbicide
Optimum® GAT®
Trait in Corn
UV Clearcoat
for Autos
Thermal Color
Filters for Displays
Izon® Authentication
Holograms for
Anti-Counterfeiting
Landmine-Resistant
Ambush-Protection
Materials
Embedded Passive
Materials for Electronics
SentryGlas® Plus
Structural Interlayers
SoleCina™ Meat
and Soy Solutions
Plasma Display Panel
Conductors
Thermal Garments
for Life Protection
Optimum® GAT®
Trait in Soybeans
Tedlar® PV for
Photovoltaics
Optimum® AcreMax™
Insect Control in Corn
Rynaxypyr®
Insecticide
High Oleic
Soybean
Renewably Sourced
Homecare Materials
Renewably Sourced
Automotive Coatings
Packaging Resins from
Renewable Resources
Sustainable
Omega-3
Nutraceuticals
Cerenol™ Renewably
Sourced Polyols
for Elastomers and
Functional Fluids
Sorona® and Hytrel®
Renewably Sourced
Engineering
Thermoplastic Resins
For DuPont, science succeeds when it makes an
impact in the marketplace. Presented here are six
of the company’s recent success stories. Below are
selected examples of products in our research
and development pipeline, poised to deliver value
in the future.
DuPont is a Market-Driven
Science Company.
An Outstanding Product Pipeline
In 2007, DuPont was ranked #1 in a quarterly Patent Board 500™ ranking of
patent portfolios of companies in all sectors across the globe. With about
2,000 new U.S. patent filings last year—and more than 20,000 patents now
in force worldwide—DuPont is determined to maintain its leadership position
while creating products that meet market needs.
Worldwide Scientific Reach
DuPont now operates more than 50 R&D centers around the globe. This not only
enables the company to attract the world’s top scientific talent—it gives DuPont
the local and regional knowledge necessary to create products that meet the
varying needs of consumers and businesses in every market.
More Than a Thousand
New Products a Year
That’s what DuPont has brought to
the marketplace each year for the past
three years. Developing those products,
from initial discovery onward, is a
complex process. But this is a world
of complex needs—for food, energy,
safety, communication, transportation,
and construction. When those needs
are met, the world is a better place
for billions of people—and for the
shareholders of DuPont.
Energy Efficiency Alternative Energy
Improved
Communications
Safety & SecurityMore & Better Food
2003 2004 2005 2006 2007
11
10
9
8
7
6
5
Annual Sales from New Products
Introduced in the Last Five Years
$billions
Renewably Sourced
Materials
Key
Icons represent market trends.
Dupont_2007_AR_V55.indd 2Dupont_2007_AR_V55.indd 2 3/6/08 12:45:18 PM3/6/08 12:45:18 PM
6. 0–2 years2–4 years4–6 years6–10 years
Early CommercializationConcept Definition & Market Validation Feasibility Demonstration Product Development
Science Delivering Shareholder Value
Examples from the DuPont R&D Pipeline and Years to Commercialization
Active Matrix
Full-Color OLED
Cyazypyr™
Insecticide
Energy Efficiency
EcoConcept Finishing System
Combining two coating steps into one
waterborne basecoat, the EcoConcept
finishing system saves carmakers
substantial amounts of energy,
time and capital while also reducing
emissions. Winner of the 2007 PACE
Award for superior innovation from
Automotive News, EcoConcept is in
place in two Volkswagen plants.
Alternative Energy
DuPont™
Solamet®
Conductive Thick
Film Materials for Photovoltaics
A new series of DuPont™ Solamet®
screen-printable thick film materials
enables solar cell manufacturers to
significantly reduce their cost per watt
by achieving higher cell efficiencies,
higher production yields and lower
material consumption. The improved
power output is a vital advancement
for solar energy productivity.
More & Better Food
Herculex®
Insect Protection for Corn
In 22 university trials across five states,
Pioneer®
brand hybrids with Herculex®
XTRA, The Better Bt™, demonstrated
exceptional protection against corn
rootworms for a second consecutive
year and also delivered an average of
21 bushels/acre yield advantage versus
untreated controls. Also in 2007, the
European Union Commission approved
Herculex®
RW corn for food, feed,
import and processing.
Safety & Security
DuPont™
Protera™
Fabric for
Comfort and Safety
Fueled by the market demand for
protective apparel, DuPont announced
a $100 million expansion of Nomex®
production for 2008. Recently introduced
DuPont™ Protera™ fabric, from the
DuPont™ Nomex®
family of products,
is specifically engineered to protect
electricians and utility workers from the
risk of electric arc hazards.
Renewably Sourced
Materials
Zemea™
Renewably Sourced Propanediol
for Cosmetics and Personal Care
A product of DuPont Tate & Lyle Bio
Products, Zemea™ renewably sourced pro-
panediol is used in cosmetics and personal
care applications. In 2007, Terra Naturals,
Inc. introduced the first deodorants with
Zemea™. Made from corn sugar, Zemea™
replaces numerous petroleum-derived
glycols in a variety of consumer applica-
tions. Look for Zemea™ in products
ranging from moisturizers to shampoos
to liquid detergents in 2008 and beyond.
Improved Communications
DuPont™
MetaFuse™
Nanometal/
Polymer Hybrids
MetaFuse™ is a patented technology that
applies ultra high strength nanometal
to components made of DuPont
engineering polymers. The result is the
best of both worlds: the strength and
high stiffness of metal combined with
the ability of thermoplastics to enable
integration and form complex shapes.
MetaFuse™ is being considered for
applications in the automotive, electronics,
sporting goods and other markets.
Next-Generation Green
Building Materials
All examples are as of March 1, 2008.
Nitrogen Use Efficiency in Corn
Next-Generation
Insect Resistance
Management in Corn
Next-Generation
Biofuels
Printable Electronics
Next-Generation Integrated
Photovoltaic Solutions
Next-Generation
Clean Technologies
Next-Generation
Nomex® for
Personal Protection
Broad Spectrum
Fungicide for Cereals
& Specialty Crops
Biobutanol
Advanced Biofuels
Thermal Substrates for
Electronic Packaging
Drought Tolerance
in Corn
Nanocoatings
for Windmills
Cellulosic
Biofuels
Next-Generation
Low Global Warming
Potential Refrigerants
Smart Materials
for Chem/Bio
Protection
Cyrel® FAST Round
Printing Process for Flexible
Packaging Graphics
Microspheres
for Biomedical
Applications
Improved Insect
Resistance
Management in Corn
Waterborne Clearcoat
for Auto Aftermarket
Actamax™ Bioadhesives
for Wound Closure
Nonwoven Structures
for Energy
Efficient Construction
Next-Generation
Communication
Cabling
Removable
Antimicrobial Coatings
Specialty
Herbicide
Optimum® GAT®
Trait in Corn
UV Clearcoat
for Autos
Thermal Color
Filters for Displays
Izon® Authentication
Holograms for
Anti-Counterfeiting
Landmine-Resistant
Ambush-Protection
Materials
Embedded Passive
Materials for Electronics
SentryGlas® Plus
Structural Interlayers
SoleCina™ Meat
and Soy Solutions
Plasma Display Panel
Conductors
Thermal Garments
for Life Protection
Optimum® GAT®
Trait in Soybeans
Tedlar® PV for
Photovoltaics
Optimum® AcreMax™
Insect Control in Corn
Rynaxypyr®
Insecticide
High Oleic
Soybean
Renewably Sourced
Homecare Materials
Renewably Sourced
Automotive Coatings
Packaging Resins from
Renewable Resources
Sustainable
Omega-3
Nutraceuticals
Cerenol™ Renewably
Sourced Polyols
for Elastomers and
Functional Fluids
Sorona® and Hytrel®
Renewably Sourced
Engineering
Thermoplastic Resins
For DuPont, science succeeds when it makes an
impact in the marketplace. Presented here are six
of the company’s recent success stories. Below are
selected examples of products in our research
and development pipeline, poised to deliver value
in the future.
DuPont is a Market-Driven
Science Company.
An Outstanding Product Pipeline
In 2007, DuPont was ranked #1 in a quarterly Patent Board 500™ ranking of
patent portfolios of companies in all sectors across the globe. With about
2,000 new U.S. patent filings last year—and more than 20,000 patents now
in force worldwide—DuPont is determined to maintain its leadership position
while creating products that meet market needs.
Worldwide Scientific Reach
DuPont now operates more than 50 R&D centers around the globe. This not only
enables the company to attract the world’s top scientific talent—it gives DuPont
the local and regional knowledge necessary to create products that meet the
varying needs of consumers and businesses in every market.
More Than a Thousand
New Products a Year
That’s what DuPont has brought to
the marketplace each year for the past
three years. Developing those products,
from initial discovery onward, is a
complex process. But this is a world
of complex needs—for food, energy,
safety, communication, transportation,
and construction. When those needs
are met, the world is a better place
for billions of people—and for the
shareholders of DuPont.
Energy Efficiency Alternative Energy
Improved
Communications
Safety & SecurityMore & Better Food
2003 2004 2005 2006 2007
11
10
9
8
7
6
5
Annual Sales from New Products
Introduced in the Last Five Years
$billions
Renewably Sourced
Materials
Key
Icons represent market trends.
Dupont_2007_AR_V55.indd 2Dupont_2007_AR_V55.indd 2 3/6/08 12:45:18 PM3/6/08 12:45:18 PM
7. 0–2 years2–4 years4–6 years6–10 years
Early CommercializationConcept Definition & Market Validation Feasibility Demonstration Product Development
Science Delivering Shareholder Value
Examples from the DuPont R&D Pipeline and Years to Commercialization
Active Matrix
Full-Color OLED
Cyazypyr™
Insecticide
Energy Efficiency
EcoConcept Finishing System
Combining two coating steps into one
waterborne basecoat, the EcoConcept
finishing system saves carmakers
substantial amounts of energy,
time and capital while also reducing
emissions. Winner of the 2007 PACE
Award for superior innovation from
Automotive News, EcoConcept is in
place in two Volkswagen plants.
Alternative Energy
DuPont™
Solamet®
Conductive Thick
Film Materials for Photovoltaics
A new series of DuPont™ Solamet®
screen-printable thick film materials
enables solar cell manufacturers to
significantly reduce their cost per watt
by achieving higher cell efficiencies,
higher production yields and lower
material consumption. The improved
power output is a vital advancement
for solar energy productivity.
More & Better Food
Herculex®
Insect Protection for Corn
In 22 university trials across five states,
Pioneer®
brand hybrids with Herculex®
XTRA, The Better Bt™, demonstrated
exceptional protection against corn
rootworms for a second consecutive
year and also delivered an average of
21 bushels/acre yield advantage versus
untreated controls. Also in 2007, the
European Union Commission approved
Herculex®
RW corn for food, feed,
import and processing.
Safety & Security
DuPont™
Protera™
Fabric for
Comfort and Safety
Fueled by the market demand for
protective apparel, DuPont announced
a $100 million expansion of Nomex®
production for 2008. Recently introduced
DuPont™ Protera™ fabric, from the
DuPont™ Nomex®
family of products,
is specifically engineered to protect
electricians and utility workers from the
risk of electric arc hazards.
Renewably Sourced
Materials
Zemea™
Renewably Sourced Propanediol
for Cosmetics and Personal Care
A product of DuPont Tate & Lyle Bio
Products, Zemea™ renewably sourced pro-
panediol is used in cosmetics and personal
care applications. In 2007, Terra Naturals,
Inc. introduced the first deodorants with
Zemea™. Made from corn sugar, Zemea™
replaces numerous petroleum-derived
glycols in a variety of consumer applica-
tions. Look for Zemea™ in products
ranging from moisturizers to shampoos
to liquid detergents in 2008 and beyond.
Improved Communications
DuPont™
MetaFuse™
Nanometal/
Polymer Hybrids
MetaFuse™ is a patented technology that
applies ultra high strength nanometal
to components made of DuPont
engineering polymers. The result is the
best of both worlds: the strength and
high stiffness of metal combined with
the ability of thermoplastics to enable
integration and form complex shapes.
MetaFuse™ is being considered for
applications in the automotive, electronics,
sporting goods and other markets.
Next-Generation Green
Building Materials
All examples are as of March 1, 2008.
Nitrogen Use Efficiency in Corn
Next-Generation
Insect Resistance
Management in Corn
Next-Generation
Biofuels
Printable Electronics
Next-Generation Integrated
Photovoltaic Solutions
Next-Generation
Clean Technologies
Next-Generation
Nomex® for
Personal Protection
Broad Spectrum
Fungicide for Cereals
& Specialty Crops
Biobutanol
Advanced Biofuels
Thermal Substrates for
Electronic Packaging
Drought Tolerance
in Corn
Nanocoatings
for Windmills
Cellulosic
Biofuels
Next-Generation
Low Global Warming
Potential Refrigerants
Smart Materials
for Chem/Bio
Protection
Cyrel® FAST Round
Printing Process for Flexible
Packaging Graphics
Microspheres
for Biomedical
Applications
Improved Insect
Resistance
Management in Corn
Waterborne Clearcoat
for Auto Aftermarket
Actamax™ Bioadhesives
for Wound Closure
Nonwoven Structures
for Energy
Efficient Construction
Next-Generation
Communication
Cabling
Removable
Antimicrobial Coatings
Specialty
Herbicide
Optimum® GAT®
Trait in Corn
UV Clearcoat
for Autos
Thermal Color
Filters for Displays
Izon® Authentication
Holograms for
Anti-Counterfeiting
Landmine-Resistant
Ambush-Protection
Materials
Embedded Passive
Materials for Electronics
SentryGlas® Plus
Structural Interlayers
SoleCina™ Meat
and Soy Solutions
Plasma Display Panel
Conductors
Thermal Garments
for Life Protection
Optimum® GAT®
Trait in Soybeans
Tedlar® PV for
Photovoltaics
Optimum® AcreMax™
Insect Control in Corn
Rynaxypyr®
Insecticide
High Oleic
Soybean
Renewably Sourced
Homecare Materials
Renewably Sourced
Automotive Coatings
Packaging Resins from
Renewable Resources
Sustainable
Omega-3
Nutraceuticals
Cerenol™ Renewably
Sourced Polyols
for Elastomers and
Functional Fluids
Sorona® and Hytrel®
Renewably Sourced
Engineering
Thermoplastic Resins
For DuPont, science succeeds when it makes an
impact in the marketplace. Presented here are six
of the company’s recent success stories. Below are
selected examples of products in our research
and development pipeline, poised to deliver value
in the future.
DuPont is a Market-Driven
Science Company.
An Outstanding Product Pipeline
In 2007, DuPont was ranked #1 in a quarterly Patent Board 500™ ranking of
patent portfolios of companies in all sectors across the globe. With about
2,000 new U.S. patent filings last year—and more than 20,000 patents now
in force worldwide—DuPont is determined to maintain its leadership position
while creating products that meet market needs.
Worldwide Scientific Reach
DuPont now operates more than 50 R&D centers around the globe. This not only
enables the company to attract the world’s top scientific talent—it gives DuPont
the local and regional knowledge necessary to create products that meet the
varying needs of consumers and businesses in every market.
More Than a Thousand
New Products a Year
That’s what DuPont has brought to
the marketplace each year for the past
three years. Developing those products,
from initial discovery onward, is a
complex process. But this is a world
of complex needs—for food, energy,
safety, communication, transportation,
and construction. When those needs
are met, the world is a better place
for billions of people—and for the
shareholders of DuPont.
Energy Efficiency Alternative Energy
Improved
Communications
Safety & SecurityMore & Better Food
2003 2004 2005 2006 2007
11
10
9
8
7
6
5
Annual Sales from New Products
Introduced in the Last Five Years
$billions
Renewably Sourced
Materials
Key
Icons represent market trends.
Dupont_2007_AR_V55.indd 2Dupont_2007_AR_V55.indd 2 3/6/08 12:45:18 PM3/6/08 12:45:18 PM
8. DUPONT 2007ANNUAL REVIEW Science Delivering Shareholder Value
Chairman’s Message
To DuPont Shareholders:
DuPont delivered strong results
in 2007, overcoming the challenges
of lower U.S. housing and auto
demand and higher cost ingredients.
Our strength came from rapid
revenue growth in emerging
markets, our Agriculture &
Nutrition segment, higher returns
on innovation, and continued cost
and capital productivity gains. There are powerful reasons
why our shareholders should view their investment in
DuPont with confidence for 2008 and beyond.
We recognize that these are challenging times, as the
macroeconomic and global political environment creates
concerns among investors about the outlook for business
profitability and growth for companies across the industrial,
consumer and service sectors.
While such concerns are real, the multi-year transformation
of DuPont and our improved performance have put us in a
better position to meet these challenges.
Our Recent Performance
Aligned with our acceleration plan announced in November
2005, DuPont has:
• Improved our overall segment pre-tax operating income
margin from 11 percent in 2003 to 17 percent in 2007.
Return on invested capital increased from 8 to 16 percent
over the same period.
• Repurchased 12 percent of our outstanding stock for
$5 billion.
• Raised the dividend by 11 percent. We currently pay you
$1.4 billion a year in dividends—twice the average of the
S&P 500 on a per share basis and about 35 percent of our
cash flow from operations.
In addition, our metrics for new product launches, patents
filed and granted, and sales from new products have all
moved significantly upward in the past three years.
Our entire team is intensely focused on meeting our near-
term financial targets in sales, earnings and cash. We are
confident we can deliver attractive growth in earnings in
2008, and see even stronger growth in the years to follow—
continuing our improvement of the last three years.
in emerging markets were 13 percent in emerging
Europe, 18 percent in emerging Asia and 11 percent in
Latin America.
• U.S. housing markets have declined for almost two years,
but DuPont has more than offset the impact with growth
outside the U.S.
• Our balance sheet is strong with a prudent level of debt.
We are able to weather an economic downturn and have
plenty of borrowing power to fund growth investments
and opportunities as they develop.
Looking beyond 2008…through 2010 we see clear potential
for average double-digit earnings growth driven by
advances in several strategic areas:
• New science for growing agriculture markets. DuPont is
vital to the world’s food supply. With demand for protein
rising rapidly, global food production will have to double
between now and 2025 on virtually the same amount of
land currently in production. As one of the world’s largest
producers of corn and soy seed and crop protection
products, DuPont is bringing to market more efficient
and cost-effective control systems for weeds, insects and
fungus to boost farm productivity, quality and yield. Our
rate of innovation is the fastest ever, as evidenced by new
products such as Optimum® GAT® traits and Rynaxypyr®
insecticide, and we will capitalize on this strength.
• Growing demand for Safety & Protection. People want
to feel safer and more secure at home, on the job, in
their cars—everywhere. DuPont’s long experience and
$6 billion base business in advanced materials such as
Kevlar®, Nomex®, and Tyvek® have resulted in a broad
offering of products and services that address this
growing global need. In 2007, we announced a new
$500 million Kevlar® brand fiber production facility in
South Carolina, which came on the heels of capacity
expansions for Nomex® flame-resistant fibers. In
2008, we will continue to use our science and growth
investments to take advantage of the opportunity we see
for attractive growth in our Safety & Protection segment.
Sustainable Growth Is Our Mission: The creation of shareholder and societal value while we reduce our
environmental footprint along the value chains in which we operate.
DuPont Agriculture
& Nutrition
Key Products & Services:
Seeds | Traits | Crop
protection chemicals |
Food ingredients |
Food quality and safety
Core Markets:
Production agriculture |
Food processing
2007 Sales: $6.8 billion
DuPont Coatings
& Color Technologies
Key Products & Services:
Titanium dioxide | Liquid
and powder coatings |
Coatings and application
services
Core Markets:
Automotive OEM | Collision
repair | Paper, Industrial
coatings | Transportation |
Architectural coatings |
Plastics
2007 Sales: $6.6 billion
DuPont Electronic
& Communication
Technologies
Key Products & Services:
Circuit and component
materials | Flexographic
printing systems |
Photovoltaic materials |
Refrigerants | Surfacing
materials | Semiconductor
fabrication and packaging
materials | Wire and cable
materials
Core Markets:
Semiconductors | Printed
circuit boards and
components | Automotive
and industrial electronics |
Displays | Packaging and
commercial printing | HVAC
refrigeration | Chemical
processing industries |
Electronic data and
telecommunications |
Alternative energy
2007 Sales: $3.8 billion
DuPont Performance
Materials
Key Products & Services:
Engineering polymers |
Flexible packaging resins |
Industrial resins |
Performance elastomers |
Performance films
Core Markets:
Automotive | Packaging |
Electrical/electronics |
Construction | Consumer
durables
2007 Sales: $6.6 billion
DuPont Safety
& Protection
Key Products & Services:
Safety and operational
consulting and training |
Specialty, performance,
and industrial chemicals |
DuPont™ Corian®
solid
surfaces | DuPont™ Kevlar®
fiber | DuPont™ Nomex®
fiber and paper | DuPont™
Tyvek®
protective material
and other selective barriers
Core Markets:
Construction | Energy |
Health care | Military/
Homeland security |
Protective apparel |
Transportation
2007 Sales: $5.6 billion
Our Market-Based Science Is Delivering Growth
DuPont is a science company. The core of our capability
and competitive advantage is market-driven scientific
discovery and new product innovation. Our strengthened
science capability has been the driving force behind the
transformation of DuPont over the past decade, and has
reshaped our businesses. In particular, DuPont is leading
the rapid convergence of biology and chemistry to create
additional competitive advantage and open new global
markets for superior-performing products.
Today over 5,000 DuPont scientists worldwide are
delivering high margin, high value-added products that
are aimed directly at unmet market needs. Sales of these
products, which I will outline in the next section, have
been instrumental in helping us overcome higher energy
and ingredient costs, including record high oil prices.
Based on important measures such as new product
introductions, U.S. patent applications filed and U.S.
patents granted, DuPont is demonstrating superior R&D
performance, which helped boost average selling prices
about 3 to 5 percent annually for the past three years. In
2007, 36 percent of our revenues—or about $10.5 billion—
were generated by products introduced in the last five
years—up from 24 percent in 2001. In the face of a near
tripling of oil prices, this has been critical.
DuPont has a rich pipeline of new products, particularly in
Agriculture, Safety & Protection, Electronics, and applied
biosciences, with more projects underway than ever before.
Our applied biosciences businesses promise significant
future growth, particularly in biofuels and biomaterials
where we have a clear technology leadership position and
strong partnerships that will facilitate market access. These
strengths are backed by a world-class intellectual property
portfolio in biotechnology.
Fundamentals for Growth Continue in 2008 and Beyond
In 2008, our global market presence and change in business
mix since the 2001 U.S. recession will make us much more
resilient to the impacts of a recession in any one country.
This also gives us confidence we can deliver attractive
earnings growth in 2008. Let me explain why:
• In 2007, more than 60 percent of our sales were from
outside the U.S. These sales are growing rapidly. From
2001 through 2007, our compound annual growth rates
• Springboard position in emerging markets. Our rapid
topline growth in emerging markets is a key factor
in counterbalancing softness in the North America
automotive and residential housing markets. Business
unit leaders in our Performance Materials, Coatings &
Color Technologies and Electronic & Communication
Technologies segments are succeeding in generating
strong growth in the emerging markets of Asia, Central
and Eastern Europe, and Latin America.
• Extend cost productivity gains. From 2003 through 2007,
DuPont reduced fixed costs as a percent of sales by 7
points. Our cost savings projects have offset inflation
in personnel costs and have provided funding for a
large number of growth investments. Productivity is
the result of the way we work at DuPont. You can expect
us to continue to generate cost productivity gains as a
mechanism for funding growth.
We Are Committed to Delivering Increased
Shareholder Value
Behind DuPont’s improved results—from market analysis
to scientific discovery to disciplined sourcing, production
and go-to-market decision-making—are the highly skilled
60,000 dedicated employees of DuPont around the world.
Further energized by our improved results, DuPont’s
leadership team is the strongest it has ever been and is
eager to exceed new and higher goals.
The entire DuPont organization is determined to make
your investment in DuPont a lucrative and lasting one.
We appreciate your ownership of our company and remain
committed to delivering superior results compared to your
other investment alternatives.
Chad Holliday
Chairman & CEO
March 1, 2008
This publication contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expecta-
tions or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and
financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,”
“projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assump-
tions. Many factors, including those discussed more fully in documents filed with the Securities and Exchange Commission by DuPont, particularly its 2007 Annual
Report on Form 10-K, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws,
regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the company does business;
competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw materials,
research and development of new products, including regulatory approval and market acceptance; and seasonality of sales of agricultural products.
Use of Non-GAAP Measures: This annual review includes company information that does not conform to generally accepted accounting principles (GAAP), including
measures which exclude significant items such as pretax operating income, earnings per share and return on invested capital. Non-GAAP measures are not a substitute
for GAAP results. Significant items represent special charges or credits that are important to an understanding of the company’s ongoing operations. The company
uses non-GAAP measures to evaluate and manage the company’s operations. Management believes that an analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the company, and allows investors to better evaluate the financial results of the company. The determina-
tion of significant items and these measures may not be comparable to similarly titled measures provided by other companies. A reconciliation of non-GAAP measures
to GAAP results is provided on the company’s website at www.dupont.com under the heading Investor Center, or as furnished in the company’s SEC filings on Form
8-K which are available at www.sec.gov.
Copyright® 2008 DuPont. All Rights Reserved. The DuPont Oval logo, DuPont™, The miracles of science™ and all products denoted with ™ and ® are trademarks or
registered trademarks of DuPont or its affiliates. Herculex® insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. ®Herculex is a registered
trademark of Dow AgroSciences LLC.
Produced with DuPont Imaging Technologies proofing products. Printed on Sappi Aero Gloss using DuPont™ RPS Vantage Titanium Dioxide.
OUR VISION
To be the world’s most dynamic science
company, creating sustainable solutions
essential to a better, safer, healthier life
for people everywhere.
DUPONT CORE VALUES
• Safety & Health
• Environmental Stewardship
• Highest Ethical Behavior
• Respect for People
GROWTH STRATEGIES
• Put Our Science to Work
• Go Where the Growth Is
• Leverage the Power of
One DuPont
ON THE COVER: Our Heritage 1) Stephanie Kwolek, Kevlar® aramid fiber, National Medal of Technology, 1996;
2) Henry Wallace, hybrid corn commercialization; 3) Roy Plunkett, Teflon® fluoropolymers; 4) Wallace Carothers,
nylon and neoprene; 5) Lammot du Pont, soda powder; 6) George Levitt, sulfonylurea herbicides, National Medal
of Technology, 1993; 7) Charles Pedersen, crown ethers, Nobel Prize, 1987. Today’s Inventors 8) John Chen,
next-generation Surlyn® ionomers; 9) Jean-Michel Philippoz, Hytrel® thermoplastic elastomer for automotive
applications; 10) Linda Castle, Optimum® GAT® trait in soybeans and corn; 11) Allisa Gam, metal edge protective
coatings for electrodeposition paints; 12) Weiming Qiu, Charles Taylor, Sheng Peng, Kenneth Moloy, advanced
surface protection and fluoroadditive applications; 13) Dietmar Dudek, plates and Cyrel® FAST thermal processor
for continuous round print forms; 14) Pamela Sharpe, Narendra Yadav, Quinn Zhu, Bjorn Tyreus, sustainable
omega-3 fatty acids; 15) George Lahm, Rynaxypyr® insecticide; 16) Reiyao Zhu, Protera™ arc and thermal
protection; 17) Lap-Tak Cheng, Kenneth Leffew, Lynda Johnson, Jonathan Caspar, advanced materials for
displays and electronics; 18) David Luckey, high productivity Kevlar® fiber spinning process; 19) Patricia Tooley,
organic treatment of TiO2 pigment; 20) Ann Vaes, clearcoats and waterborne basecoats for environmentally
smart refinish; 21) Charles Noelke, next-generation fluoromaterial products and processes.
1
5
15
19
8
9
21
2
12
4
11
10
Science Delivering Shareholder Value
3
7
13
14
16
18
206
Net Sales
(dollars in billions)
$5
$10
$15
$20
$25
$30
2003
Textiles & Interiors, which was divested
in 2004.
2004 2005 2006 2007
Pretax Operating Income Margin1
(percentage)
20%
5%
10%
15%
2003 2004 2005 2006 2007
Earnings Per Share1
(dollars)
2003 2004 2005 2006 2007
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
1 Before significant items.
2 Excludes other comprehensive income.
20%
5%
10%
15%
2003 2004 2005 2006 2007
Return on Invested Capital1, 2
(percentage)
DUPONT 2007ANNUAL REVIEW
17
Dupont_2007_AR_V55.indd 1Dupont_2007_AR_V55.indd 1 3/6/08 12:41:17 PM3/6/08 12:41:17 PM
9. Appendix
E. I. du Pont de Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts )
2007 2006 2005 2004 (1)
2003 (1)
Segment PTOI 4,878$ 4,283$ 4,139$ 2,735$ 1,263$
Significant Items charge
(2)
225 230 56 1,470 1,875
Segment PTOI - excluding significant items 5,103$ 4,513$ 4,195$ 4,205$ 3,138$
Total segment sales 29,697$ 27,726$ 26,933$ 27,893$ 27,936$
Segment PTOI as a percent of segment sales - excluding significant items 17% 16% 16% 15% 11%
(1) Includes Textiles & Interiors, which was divested in 2004.
(2) Details of signifcant items are provided in the company's quarterly earnings news releases
which are located at www.dupont.com under the heading Investor Center, or as furnished
in the company's SEC filings on Form 8-K which are available at www.sec.gov.
Reconciliations of Earnings Per Share (EPS)
2007 2006 2005 2004 (1)
2003 (1)
Earnings Per Share (EPS), excluding significant items 3.28$ 2.88$ 2.34$ 2.38$ 1.66$
Significant Items - (charge)/benefits
(2)
(0.06) 0.50 (0.27) (0.61) (0.67)
EPS before cumulative effect of changes in accounting principles 3.22 3.38 2.07 1.77 0.99
Cumulative effect of changes in accounting principles - - - - (0.03)
Reported EPS 3.22$ 3.38$ 2.07$ 1.77$ 0.96$
(1) Includes Textiles & Interiors, which was divested in 2004.
(2) Details of signifcant items are provided in the company's quarterly earnings news releases
which are located at www.dupont.com under the heading Investor Center, or as furnished
in the company's SEC filings on Form 8-K which are available at www.sec.gov.
Twelve Months Ended December 31,
Reconciliations of Segment Pre-Tax Operating Income (PTOI) as a Percent of Segment Sales
Management believes that measures of income excluding significant items ("non-GAAP" information) are meaningful to investors because they provide
insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with generally accepted
accounting principles (GAAP) and should not be viewed as an alternative to GAAP measures of performance.
Twelve Months Ended December 31,
10. Appendix
E. I. du Pont de Nemours and Company
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts )
2007 2006 2005 2004 (2)
2003 (2)
Net Income 2,988$ 3,148$ 2,056$ 1,780$ 973$
Adjustments for ROIC:
Significant items - charge/(benefits)
(3)
55 (443) 276 631 650
Cumulative effect of a change in accounting principle - net of income taxes - - - - 29
Minority interests in earnings/(losses) of consolidated subsidiaries 7 (15) 37 (9) 71
Interests expense - after tax 219 262 280 190 116
Net income - excluding significant items and after adjustments for ROIC 3,269$ 2,952$ 2,649$ 2,592$ 1,839$
Sum average of:
Short-term/long-term borrowings and capital lease obligations 7,896$ 8,397$ 8,755$ 9,843$ 9,816$
Minority interests 441 475 756 871 1,325
Stockholders' equity - excluding other comprehensive income 11,892 10,437 11,872 11,844 11,821
Average invested capital, excluding other comprehensive income 20,229$ 19,309$ 21,383$ 22,558$ 22,962$
ROIC - excluding significant items 16% 15% 12% 11% 8%
(2) Includes Textiles & Interiors, which was divested in 2004.
(3) Details of signifcant items are provided in the company's quarterly earnings news releases
which are located at www.dupont.com under the heading Investor Center, or as furnished
in the company's SEC filings on Form 8-K which are available at www.sec.gov.
Reconciliations of Return on Average Invested Capital (ROIC)(1)
(1) ROIC adjusted to reflect the exclusion of Other Comprehensive Income. ROIC Calculation = 12 month net income before
after tax interest expense and minority interest / average invested capital.
Twelve Months Ended December 31,